Home >Money >Personal Finance >Property sale can be set aside in case of fraud

I have a query regarding the Limitation Act. Suppose Mrs X bought a property in 1996. She expired in 2002 without any will, neither registered nor unregistered.

There was a registered declaration deed made by five of her sons in 2009, claiming that there are no other legal heirs of the deceased, and she did not leave any will.

All the five members sold the property to some party with mutual consent. There are multiple transactions done for the said property after that, and now, the last sale deed is from 2018.

The property is now coming to a bank for mortgaging. Is it safe to mortgage, or can any of the legal heirs (if other than those five in the declaration deed) claim the property?

—Dhruv Khanna

With the limited information to answer your query, we assume that Mrs X owned some property and had five sons and no other legal heirs and that she passed away intestate, i.e., without leaving a will in 2002.

Further assuming that all the legal heirs of Mrs X had duly transferred the subject property in favour of a third party, then mortgaging the property would not be a risky proposition.

However, there may be two possibilities, when any of her sons may claim an interest in the property.

Firstly, if, out of all her legal heirs, any one of her sons was a minor, he would have the right to accept or reject such a sale transaction within three years from the date of becoming a major, i.e., of 18 years of age.

Secondly, if any of the sons prove that the sale transaction of the subject property was done fraudulently, irrespective of the limitation, the sale transaction may be set aside by a court of law, as fraud vitiates every act.

Aradhana Bhansali is partner, Rajani Associates.

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